Another quick update.
The engine block is at AMT Racing engines. After inspection and test-honing, it was determined that I'd need to go to 1mm oversized pistons to allow the bore to clean up. Since +1mm 1.5L pistons are complete unobtanium, that meant I'd be buying a set of custom connecting rods to work with a set of easily obtainable 1.6 Turbo Diesel pistons.
So, the money has been spent, and the needed parts have been received. From Pauter Machine, I now have a set of custom connecting rods with 49mm big end, 24mm pin end, and 139.4mm center to center length...
These suckers are HEAVY DUTY. They will be able to handle any amount of power that a small displacement VW diesel can tolerate.
To go along with the custom rods, I found a set of genuine OEM Kolbenschmidt "Turbo" pistons, which are notched for the oil squirters, and have an angled chamfer near the top of the piston, to allow for more localized heat on the top face....
All of the parts are now at AMT, awaiting their turn....